Cost Benefit Analysis of Khaddar Industry: a Study on Comilla District

Abstract

The study tries to findout the Cost Benefit Analysis (CBA) of Khaddar industry. Comilla district is considered as the study area. Sample is selected purposively based on the stablishment available within the district. The collected data is analysed by using Microsoft Office Excel 2007 to calculate different statistical values used in this paper. All the possible techniques of Cost Benefit analysis are employed. The findings suggest that, in both the cases i.e., in case of Hand Loom as well as in case of Power Loom the expected return is very high. The value of Net Present Value (NPV), Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR) suggest that, there is a very higher profitability in this sector. The IRR of the projects is 183 and 157 for Hand Loom and Power Loom respectively which is exceptionally very high. The higher value may due to low establishment costs and low maintenance costs for hand loom alternatively high productivity and comparatively lower operating costs for power loom industries.